Providing a project update on its Moma titanium minerals mine in northern Mozambique, JSE-listed Kenmare Resources MD Tom Hickey says the upgrade of Wet Concentrator Plant (WCP) A, and its subsequent transition to the large Nataka orezone, will allow Kenmare to unlock over 70% of Moma’s mineral resources.

Nataka is the largest orezone in Kenmare’s portfolio, containing over six-billion tonnes of Moma’s nine-billion tonnes of mineral resources. WCP A is the largest of Kenmare’s three mining plants, representing about 50% of total mining capacity.

WCP A will transition from its current mine path in Namalope, where it has mined for over 17 years, to Nataka.

Kenmare says this is the only move of this kind that is required in WCP A’s economic life, which is expected to extend beyond the existing mine plan, running to 2045.

Kenmare says the WCP A upgrade and transition project consists of three key components, in addition to the infrastructure included in the WCP A infrastructure definitive feasibility study (DFS).

The first component involves the introduction of new, more powerful dredges.

The fabrication of the two new dredges is advancing with the project contractor and Kenmare saying all work is expected to be completed in the second quarter, before transportation to Moma for commissioning in the third quarter.

Secondly, all principal components of the new module, including 42 pontoons, surge bin, upfront desliming circuit, major steelwork and screens, are on site. Construction is advancing, with a risk of a delay to commissioning to later in the third quarter, says Kenmare.

Lastly, construction of a tailings storage facility began in mid-January, with commissioning expected in the fourth quarter. The company says the work is currently ahead of schedule.

The total capital cost for the upgrade and transition of WCP A remains at $341-million. Kenmare says it plans to fund the project from existing financial resources and expected cash flow.
 
Kenmare began incurring capital expenditure (capex) for the WCP A upgrade and transition in 2023, with orders for key long-lead-time items, such as the two new higher-capacity dredges.

The company says capex payments to date have been slower than expected, deferring forecast expenditure from 2024 into subsequent years.

“We are now adopting a phased approach to increasing production, combining the results of our analysis of upgrade options for WCP B and learnings from the more recent Selective Mining Operation.

“This strategy will enable us to allocate capital in the most efficient manner, delivering enhanced returns,” says Hickey.

OTHER CAPITAL PROJECTS
Meanwhile, the DFS for the upgrade of WCP B and all identified optimisation workstreams are now complete.

While the studies confirmed attractive returns, Kenmare says the more recent, less capital intensive opportunity to expand concentrator capacity through the selective mining operation (SMO) is prompting the company to revisit its approach to increasing production.
 
The first SMO continues to ramp up, and learnings will inform the design and deployment of a second SMO plant, for which $6-million has been estimated and is reflected in the previously announced 2025 capital cost guidance.

The second SMO is expected to utilise dry mining equipment to feed its plant. The capacity and precise capital cost requirement will be refined through the second quarter of this year.
 
Further, the company plans to adopt a phased strategy to de-bottleneck WCP B during the next three years, leveraging existing dry mining equipment in the near term and potentially repurposing a redundant dredge from WCP A.

Kenmare says this approach is expected to lower capital intensity and optimise capacity, while incorporating the learnings from the DFS.